MLM Compensation Plans: Which is Right For You?
Michalis 'BIG Mike' Kotzakolios


Defined Tag: MLM Compensation.

For all intents and purposes, there are 4 major types of MLM Compensation available out there that this guide will explore. The total number continues to increase as the number of MLM’s and Network Marketing Programs out there goes up. In addition to the types of MLM Compensation explored here, some plans may combine two or more of these as their individual method of payment.

First, there is the matrix plan. This is also the MLM Compensation plan that is often referred to as a “pyramid.” Such a matrix plan will allow you to have as many affiliates on as many levels as you can accrue up to a fairly deep number. Most plans will typically pay you down five levels of your affiliates.

Second is the forced matrix pay plan. Similar to the matrix plan, the forced matrix limits the number of people you can have on level one. A common MLM Compensation plan that uses a forced matrix is the 3X9. In this type of MLM, you can only have up to three people on your first level. In turn, they can only have three each on their top level, which leaves you with only 9 on the second level.

A third method of MLM Compensation is the fast start bonus plan. Rarely is this the only compensation, but it warrants mentioning because of its popularity. In most cases, a fast start bonus is a one time payment of as much as 100% of the first month’s membership for those you sponsor.

The fourth type of MLM Compensation is the breakaway. A breakaway is something you will often see used with matrix plans. Once a member under your reaches a certain level, they break from your team into one of their own. In that case, you will not longer be paid on that section. You will, though, get a lump sum commission on the whoel volume of the break away unit so as to ease your pain.

As the numbers of MLM’s out there increase, so do the number of MLM Compensation packages out there. The key is to explore each one and find the compensation method that will work best for you.

BIG Mike is a well known author, developer and Adsense expert as well as the owner of Niche Maniacs - a unique Adsense Marketing System designed to build long-term passive income streams from Adsense, YPN, Chitika and other PPC services.